Peru: Inflation jumps to highest level in over two years
November 1, 2011
In October, consumer prices rose 0.31% over the previous month, which was slightly below the 0.33% increase observed in September but defied market expectations that consumer prices would slow to 0.20%. The monthly rise reflected higher prices for food and non-alcoholic beverages, as well as for clothing and footwear. Compared to the same month last year, annual headline inflation jumped from 3.7% in September to 4.2% in October, which represented the highest level since April 2009. Moreover, the reading marked the fourth consecutive month in which inflation has lingered above the upper tolerance margin of the Central Bank's target of 2.0% 1.0%. The Central Bank expects inflation to settle within a range of between 3.5% and 4.0% this year. Next year, the Central Bank sees inflation staying within the 2.0% and 3.0% range.
Author: Ricardo Aceves, Senior Economist